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Month: November 2013

When purchasing a home insurance policy in Selden, New York, often plot value is not considered in the coverage plan. When you insure your home, you are insuring the value of the structure and how much it will cost to replace that structure on the same plot of land. You are also insuring the value of the contents inside the home. Even if your home is destroyed by a fire, the land the home sits on should be ok.

Your independent agent in Selden will help answer questions about the best insurance plan for your specific needs. The amount of insurance you purchase will affect how much you pay for your monthly premium. You do not need to over insure your home, but you do need to make sure you have enough coverage to replace the home in the event of a disaster. In the event your home is destroyed and you choose to rebuild a home in another location, you should be able to sell the land where the previous house was located.

When choosing and purchasing an insurance policy for your house, you should always compare quotes and rates. Your independent agent will help you look through all of your options and find a company that can meet your insurance needs for a price you can afford. When calculating how much coverage you need, consider how much it would cost to replace your home. Then you will need to add the value of your possessions. The best way to do this is to take inventory of your items. You may also want to take pictures or video to expedite the process if you need to make a claim. Talk to us today to find and purchase your new insurance plan.

When you are looking at home insurance options in Selden, New York, it is likely that you will need to select between the actual cash value of items or the replacement cost when items are insured. By understanding the difference between your coverage options, it is easier to make a decision.

Actual Cash Value

The actual cash value of an item is usually defined as the cost of replacing the item minus any depreciation on it since the time it was purchased. For example, if the fair market value for a new television is $500 and the depreciation was $200 on the old set, then the insurer would provide $300 for the item.

Replacement Cost

The replacement cost refers to the total amount it will cost to replace the item with the same model or a similar model if the same model is not available. That means if the television costs $500 to replace, then the insurer will provide $500 for the item.

Variations Between Insurers

The calculations for depreciation and the actual expense of replacing an item may vary between insurers. Before assuming that a specific insurer is better, take the time to ask about how depreciation is calculated and how the insurer determines the actual market value of the item. Different companies may offer a variety of calculations that make the estimation for replacement a little complicated.

Getting the right coverage for a house can seem complicated, but recognizing the terminology that the insurers use in the policy will help reduce the risk of getting the wrong plan. When it seems complicated or hard to understand, an independent agent can answer questions or provide more information about the coverage. To learn more, contact us to talk to an agent today.

When you are looking at your home insurance policy in Mastic, New York, you may worry about any detached structures on the property. Detached structures are any buildings that are located on the property, such as a shed or garage, that are not attached to the house. In many plans, a set percentage of the coverage amount is available to protect those items.

General Coverage

Although specific details will vary between insurers and specific plans, in many cases detached structures are covered under the basic plan. The amount of coverage is generally about 10 percent of the total amount taken out on the home, but exact percentages and details may differ between insurers and specific plans.

The general coverage that many insurers provide is usually reasonable for a shed or garage that may be on the property, but not attached to the house. In some cases, it may be necessary to buy additional protection for the home.

Buying Additional Protection

Additional protection may be necessary if the structure is a guest house or similar building with a higher repair or replacement cost than a simple garage or shed. When the cost or replacing or fixing the structure is higher than the amount provided by the current insurer, it is appropriate to consider separate coverage for the structure or purchasing additional protection for the specific building.

While the basic home insurance plan will protect any structure that is on the property, the amount of coverage that you need may vary. If you need more than 10 percent of your current coverage, then you may want to purchase additional protection for any structures that are not attached to the house. To learn more about your coverage options, contact us to talk to an independent agent.

Disclaimer: “The content of these blogs do not represent any type of specific coverage’s offered by the agency.”

If you live on a piece of property in Selden, New York that is prone to flooding, you cannot rely on your home insurance policy to protect you against a flood. You have to buy a separate flood insurance policy through the National Flood Insurance Program (NFIP).

You can buy flood insurance that will protect your main dwelling as well as other buildings or structures on your property. Currently, the maximum amount of flood insurance you can buy to cover your home is $250,000. For commercial buildings, the maximum coverage doubles to $500,000.

A second part of flood insurance protects the contents or personal property inside of your home. For instance, if your clothing, computer or furniture gets damaged, you can file a claim and get reimbursed for the amount of damage above your deductible.

Your dwelling is insured against damage to the building as well as the foundation upon which it sits. It also will cover your electrical and plumbing system as well as your central air conditioning system and permanently installed carpeting.

Flood insurance does not cover flooding that originates inside of your house. For instance, if a pipe bursts and causes a foot of water to accumulate in your basement, your claim would be under your home insurance policy and not your flood policy. Floods occur when rivers overflow their banks, tides rise during a hurricane or heavy rain causes water from outside to enter your home.

If you file a claim as a result of damage from a flood, your policy will pay replacement cost value up to 80 percent of your building’s replacement cost. Other buildings on your property, like a detached garage or storage shed, will be reimbursed for damage at the actual cash value, which is defined as the replacement cost less the depreciated value of your building.

If you have any questions about whether you need flood insurance in Selden, New York, please give us a call. An independent agent will be happy to go over all of the details of flood insurance policies.

Finding the right home insurance in Mastic, New York requires an understanding of the terminology in your current plan. If you are concerned about how the replacement cost is calculated, it is important to identify whether your insurer uses the present market value to calculate the price.

Cost of Replacing the Item

In general, the replacement value of an item is calculated according to the expense of replacing the item with a comparable model that is available on the market. Since a television, piece of furniture or similar item may not be available on the market, the expense is determined by the price of buying a comparable item at the time that the purchase is necessary.

Variation in Estimations

Since the cost of an item may vary, the exact estimation for replacement value may differ between insurance providers. Factors that may impact the cost include variation between stores, discounts and special sales. Different companies may have a set value for specific items based on averages between local stores.

Since estimations may vary slightly, it is usually a good idea to ask about the amount that the insurance will provide before assuming that it will cover the full cost of a new item. By getting an answer beforehand, you will face fewer complications when you are making a claim on your insurance.

When an item that is covered under your home insurance plan is damaged or stolen, you may worry about the expense of replacing different items. Fortunately, an independent agent can help you navigate the paperwork associated with your current plan so that you are prepared to make a claim when you are faced with an unexpected financial loss in your home. Contact us today to talk to an agent.